Additional information: 1) Annual payments on the lease liability are $5,000 per year. 2) The accrued interest comprises $3,000 on the 6% note payable and $7,000 on the 7% note payable. 3) The 7% note payable value includes the current portion of the loan. The loan principal will be repaid in equal amounts over the next five years. 4) Bonds have a Face Value of $2,000,000 and interest is paid semi-annually on January 1 and July 1, the stated interest rate is 6% and the interest rate on the date of issue was 7%. The year-end adjusting entry to recognize interest expense on June 30, 2020 has not yet been made. Instructions Prepare a corrected statement of financial position.

Additional information: 1) Annual payments on the lease liability are $5,000 per year. 2) The accrued interest comprises $3,000 on the 6% note payable and $7,000 on the 7% note payable. 3) The 7% note payable value includes the current portion of the loan. The loan principal will be repaid in equal amounts over the next five years. 4) Bonds have a Face Value of $2,000,000 and interest is paid semi-annually on January 1 and July 1, the stated interest rate is 6% and the interest rate on the date of issue was 7%. The year-end adjusting entry to recognize interest expense on June 30, 2020 has not yet been made. Instructions Prepare a corrected statement of financial position.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 6E: Short-Term Debt Expected to Be Refinanced On December 31, 2019, Excello Electric Company had 1...

See similar textbooks

Similar questions

Short-Term Debt Expected to Be Refinanced On December 31, 2019, Excello Electric Company had 1 million of short-term notes payable due February 7, 2020. Excello expected to refinance these notes on a long-term basis. On January 15, 2020, the company issued bonds with a face value of 900,000 for 882,000. On January 22, 2020, the proceeds from the bond issue plus additional cash held by Excello on December 31, 2019, were used to liquidate the 1 million of short-term notes. The December 31, 2019, balance sheet is issued on February 12, 2020. Required: Prepare a partial balance sheet as of December 31, 2019, showing how the 1 million of short-term notes payable should be disclosed. Include an appropriate footnote for proper disclosure.
1. On December 31, 2021, what total amount should be reported as current liabilities?* 14% Notes payable, due 2023 Accrued rent expenses Credit balances of customers' accounts Debit balances in suppliers' accounts Estimated premium liability Mortgage payable Serial bonds payable in semi-annual installment of P200,000 Unearned subscription income 30,000 5,000 11,000 7,000 62,000 100,000 2,000,000 20,000 A. 498,000 B. 505,000 C. 198,000 D. 578,000 E. NONE OF THEM
Cute Company disclosed the following information on December 31, 2021: Mortgage payable, issued on March 1, 2012, maturing after 10 years P1,500,000 Notes Payable P40,000 Deferred tax liability P10,000 Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022 P1,000,000 Compute for the current liabilities as of December 31, 2021
Lappy Company disclosed the following information on December 31, 2021: Accounts Payable P20,000 Notes Payable P40,000 Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022 P1,000,000 Compute for the CURRENT LIABILITIES as of December 31, 2021 *take note of the interest-bearing note
Preparing a Debt Disclosure As of December 31, 2020, Dole Company’s long-term debt consisted of the following: $146,050—Unsecured note payable to bank due 2021. $517,500—Unsecured note payable to bank due 2023. $690,000—Unsecured note payable to bank due 2025. $103,500—Secured mortgage payable to bank due in equal installments 2021 through 2025. $184,000—Secured note payable to bank due in 2026. Prepare the required financial statement disclosure at December 31, 2020, indicating the amounts due in each of the next five years and thereafter. NotePayable Year 12021 Year 22022 Year 32023 Year 42024 Year 52025 Thereafter $146,050 Answer Answer Answer Answer Answer Answer 517,500 Answer Answer Answer Answer Answer Answer 690,000 Answer Answer Answer Answer Answer Answer 103,500 Answer Answer Answer Answer Answer Answer 184,000 Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer
An analysis of TANG Co.'s liabilities on December 31, 2020 disclosed the following information: Accounts payable, after deducting debit balance in suppliers' account amounting to P100,000 and postdated checks or P50,000 Bonds Payable Premium on Bonds Payable Mortgage Payable Share Dividend Payable Credit Customers' accounts 4,000,000 1,000,000 100,000 850,000 750,000 500,000 Premium payable Deferred tax liability Deferred revenue Accrued Expenses 600,000 200,000 175,000 150,000 The deferred tax liability is based on temporary differences that will reverse in 2023. Compute the total amount of current liabilities in the statement of financial position.
A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, 2018, is shown as follows. accounting period principal balance cash payment app. to interest app to principal 2018 136000 34965 12240 22725 2019 113275 34965 10195 24770 2020 88505 34965 7965 27000 what is the rate of interest being paid in percentage?
On December 31, 2020, Glare Company provided the following information: Accounts payable, including deposits and advances from customer of P250,000 Notes payable, including note payable to bank due on December 31, 2022 of P500,000 Shared dividend payable Credit balances in customer's accounts Serial bonds payable in semiannual installment of P500,000 Accrued interest on bonds payable Contested BIR Assessment - possible obligation Unearned rent income P1,250,000 P1.500.000 P400,000 P200.000 P5.000.000 P150,000 P300.000 P100,000 Notes: 1. Total liabilities of the Company amounted to P10,000,000 2. There are no other noncurrent liabilities of the Company aside from those listed above
Amasan Corp. reported the following liabilities on December 31,2020 Accounts Payable 750,000 Short-terms borrowings 400,000 Bonds Payable due 2021 3,000,000 Premium on bonds payable 200,000 Mortgage payable, current portion 500,000 3,500,000 Bank loan, due June 30,2021 1,000,000 The 1,000,000 bank loan was refinanced with a 5-year loan on January 15,2021. The financial statements were issued March 1, 2021. What amount should be reported as current liabilities on December 21,2020? a.2,650,000 c.5,350,000 b.5,850,000 d. 4,850,000
Jazz Company lends Sullivan Company $30,000 on August 1, 2019 in exchange of a 9-month, 12% interest note. If Jazz Company accrued interest on its December 31, 2019 year-end, what is the financial statement effect of the collection of the note and interest at its maturity date? Select one: a. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash InterestReceivable NotesReceivable Retained Earnings InterestIncome A) +32,700 -1,200 -30,000 +1,500 +1,500 b. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash InterestReceivable NotesReceivable Retained Earnings InterestIncome B) -32,700 +1,500 +30,000 -1,200 -1,200 c. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash InterestReceivable NotesReceivable Retained Earnings InterestIncome…
Presented here are long-term liability itema for Marin Inc. at December 31, 2017. Bonds payable (due 2021) $870,000 Notes payable (due 2019) 79,000 Discount on bonds payable 30,000 Prepare the long term labikties section of the balance sheet for Marin inc. MARIN INC. Ralance Sheet (Parta)
Please answer my hw thnxc